Retirement.pension.saving help

jamesd

callycutenose wrote: »

Also I was thinking maybe to put some of saving into pension because 1 have not put in my full allowance past 3 years about 30000.

There are two different relevant limits to how much you can pay in and you have to stay within both limits:

1. Your qualifying income during the tax year that you pay in, which normally means work PAYE income. Pension income doesn't count, nor does investment or savings income. If this is less than £3,600 you can still pay in £3,600 gross, £2,880 net. You can't carry forward any unused income from past years to increase what you can pay in. In addition, an employer can pay in in your name any amount subject to the annual limit in 2. Employer paying means salary sacrifice or redundancy payment or similar, not deducted from normal payslip pay.

2. The annual pension contribution limit which is currently £40,000. If your income from 1 is sufficient you can carry forward unused allowance from the past three years. All contributions to pensions in your name count towards this limit, whether by you, your employer or a random stranger.

Because it is early in the tax year your limit will probably be your earned income.